OVO Launches Solar Installation Service for SMEs

OVO Energy targets business solar market with nationwide installer network

OVO Energy has opened its solar installation service to small and medium-sized enterprises across the UK. The energy supplier, which already serves over 3.5 million domestic customers, now offers commercial solar systems ranging from 100kW rooftop installations to 5MW ground-mounted arrays.

The service connects businesses with regional MCS-accredited installers who handle everything from feasibility studies and grid applications through to commissioning and maintenance. According to OVO, businesses could cut their energy bills by up to 50% by generating electricity during peak daytime hours when grid prices are highest.

This move extends OVO’s existing residential solar program, launched in 2023, into the commercial sector. The company has built a network of certified installers covering 70% of UK postcodes. These local teams bring knowledge of planning requirements and regional grid constraints while OVO provides national coordination and technical standards.

From domestic rollout to commercial expansion

OVO entered the solar market through its residential division, installing photovoltaic panels, battery storage, and inverters for homeowners. That service includes a Smart Export Guarantee tariff paying up to 20p per kilowatt-hour for surplus electricity exported to the grid. The residential systems typically cost around £7,543 and deliver annual savings up to £1,030, with payback periods as short as seven years.

The company’s commercial offering uses the same installer network but scales up capacity and complexity. Systems are designed around specific business energy profiles. A warehouse running refrigeration equipment has different requirements from a school or office building. Consequently, OVO tailors system size and configuration to match when a business actually uses power.

Installers like Greenscape Energy in East Anglia demonstrate how this model works. Regional partners combine detailed understanding of local planning rules and grid capacity with OVO’s standardized processes. Greenscape alone has completed over 16,000 installations, bringing that experience to commercial projects under the OVO framework.

The timing reflects broader changes in UK energy supply. OVO acquired SSE’s retail business in 2020, becoming one of the largest suppliers during a period when many smaller competitors collapsed. The energy crisis following Russia’s invasion of Ukraine eliminated dozens of suppliers while accelerating demand for on-site generation among businesses facing unprecedented cost increases.

System specifications and coverage

Commercial installations start at 100kW for smaller premises with suitable roof space. These systems suit businesses like light industrial units, retail parks, or professional services offices. Larger operations can specify ground-mounted arrays up to 5MW, appropriate for distribution centers, manufacturing sites, or agricultural holdings with available land.

Each project begins with a technical assessment of the site. Installers evaluate roof condition and orientation, shading from nearby structures, and electrical infrastructure capacity. They also manage Distribution Network Operator applications, which are required when connecting generation capacity to the local grid. These applications determine whether the existing network can accept exported power or if upgrades are needed.

Installation timescales vary by project size and complexity. However, residential projects typically complete within four weeks from approval to commissioning. Commercial projects take longer due to larger system size and additional regulatory steps, though OVO has not published specific timelines for business installations.

All installers hold Microgeneration Certification Scheme accreditation. This standard covers solar PV design and installation quality. For commercial projects, installers must also demonstrate competence with three-phase electrical systems and commercial building regulations. OVO’s network includes contractors with National Inspection Council for Electrical Installation Contracting certification, ensuring compliance with wiring standards.

Financial returns and operational savings

The 50% bill reduction figure applies to businesses with high daytime electricity demand. Solar panels generate most power between 10am and 4pm on clear days. Businesses operating during these hours offset the most expensive grid electricity, which peaks during working hours when national demand is highest.

Actual savings depend on several factors. A business consuming 200 megawatt-hours annually with 60% daytime usage will see different returns from one with identical consumption but mostly evening or shift work. Similarly, a south-facing roof with no shading performs better than an east-west orientation or a site with tree cover.

Battery storage increases financial returns by storing surplus generation for use after sunset. However, batteries add significant capital cost. A business must balance the extra investment against the value of evening self-consumption versus exporting power at the Smart Export Guarantee rate. For some operations, exporting surplus makes more financial sense than storing it.

OVO’s residential pricing provides a reference point, though commercial rates differ. Domestic systems cost £523 to £1,238 per kilowatt of capacity installed, depending on system size and whether battery storage is included. Commercial installations benefit from economies of scale on larger projects but face additional costs for structural surveys, planning applications, and grid connection work.

The two-year guarantee on residential installations sets a baseline expectation. Commercial systems typically include longer warranty periods due to higher capital values. Moreover, ongoing operations and maintenance contracts ensure monitoring, cleaning, and prompt repair of any faults that reduce generation.

Business sectors and use cases

Warehouses and distribution centers represent ideal candidates for commercial solar. These buildings offer large, flat roof areas with minimal shading. Additionally, refrigeration and materials handling equipment create consistent daytime demand that aligns with solar generation patterns. A 500kW system on a regional distribution center could generate 425,000 kilowatt-hours annually in a favorable location.

Schools and colleges also benefit from the daytime generation profile. Lighting, IT equipment, ventilation, and kitchen facilities all operate during school hours when panels produce power. Furthermore, the long summer holiday period allows export income when buildings are largely unoccupied. Some schools combine solar with battery storage to support evening lettings of sports facilities.

Manufacturing sites vary widely in suitability. A metal fabrication workshop running machinery during daylight shifts gains substantial savings. Conversely, a bakery operating overnight ovens sees less benefit unless battery storage shifts the generation to match production hours. Energy-intensive processes like heat treatment or chemical manufacturing may need arrays too large for available roof space.

Office buildings face a changing calculus. Hybrid working patterns have reduced weekday occupancy in many commercial offices. A building at 40% capacity needs less power for lighting and HVAC systems. This affects system sizing and return calculations. Nevertheless, offices still host server rooms, reception areas, and core building systems that maintain baseload demand even when staff work remotely.

Agricultural businesses use solar differently. Dairy farms need power for milking equipment, refrigeration, and water pumping throughout the day. Arable farms might install ground-mounted arrays on field margins, avoiding productive land while generating income from otherwise unused space. Some farms explore agrivoltaics, combining solar panels with grazing sheep beneath, though this remains a developing practice.

Commercial solar deployment accelerates across UK business sectors

• OVO Energy now offers solar installations from 100kW to 5MW for SMEs through a network of MCS-certified regional installers covering 70% of UK postcodes.
• Businesses with high daytime electricity use could reduce energy bills by up to 50% by offsetting peak grid rates, though actual savings depend on consumption patterns and site characteristics.
• The service includes full project management from feasibility studies and DNO applications through installation, commissioning, and ongoing maintenance contracts.
• Each 10kW of installed capacity avoids approximately 1.5 to 1.7 tonnes of CO₂ emissions annually, supporting net-zero commitments and ESG reporting requirements.
• Systems integrate with OVO’s Smart Export Guarantee tariff paying up to 20p per kWh for surplus electricity, creating a revenue stream from excess generation.
• The commercial expansion builds on OVO’s residential solar program launched in 2023, which has delivered systems with payback periods as short as seven years.

Carbon reduction and compliance benefits

Solar installations deliver measurable carbon savings that businesses can report in sustainability disclosures. Each 10 kilowatts of panel capacity avoids 1.5 to 1.7 tonnes of CO₂ annually, based on typical UK generation and grid carbon intensity. A 250kW commercial system therefore prevents around 40 tonnes of emissions each year.

These reductions feed directly into Scope 2 emissions reporting under the Greenhouse Gas Protocol. Businesses measuring their carbon footprint subtract self-generated renewable electricity from their grid consumption figure. This lowers reported emissions and demonstrates progress toward reduction targets.

Public sector suppliers face specific requirements through Procurement Policy Note 06/21, which mandates carbon reduction plans for contracts above £5 million annually. On-site generation provides concrete evidence of decarbonization action. Furthermore, it offers a hedge against rising carbon prices that may flow through to electricity tariffs as the UK tightens emissions trading schemes.

Some businesses need Energy Savings Opportunity Scheme compliance. ESOS requires large enterprises to audit energy use every four years and identify savings measures. Solar installation represents a quantifiable action taken on audit recommendations. Similarly, businesses working toward ISO 50001 energy management certification can point to renewable generation as part of their systematic approach.

Tenant and investor pressure increasingly demands environmental performance data. Commercial landlords installing solar improve building energy ratings and attract tenants with strong ESG commitments. Meanwhile, businesses reporting through frameworks like TCFD or CDP can demonstrate capital investment in climate resilience and energy security.

Grid capacity and planning considerations

Connection to the local distribution network requires approval from the relevant Distribution Network Operator. The DNO assesses whether the grid can accept exported power without causing voltage or capacity issues. In areas with many existing generators, the network may already be at capacity. This can delay projects or require costly grid reinforcement.

Some businesses install systems sized to avoid export entirely. By matching panel capacity to minimum daytime demand, they eliminate the need for export agreements and simplify DNO applications. However, this approach sacrifices potential export revenue and may undersize the system relative to available roof space. It suits businesses with consistent high baseload but less well those with variable demand.

Planning permission rules vary by location and installation type. Most rooftop commercial solar falls under permitted development rights, requiring no planning application. Nevertheless, listed buildings, conservation areas, and sites near airports or military installations face restrictions. Ground-mounted arrays above certain sizes always need planning permission, with agricultural land attracting particular scrutiny.

Installation must comply with building regulations, particularly regarding roof loading and fire safety. Solar panels add weight that older roofs may not support without reinforcement. Additionally, fire services require access routes across roofs and worry about electrical hazards during firefighting. Commercial projects therefore need structural surveys and sometimes roof upgrades before installation can proceed.

Comparing installation approaches for business solar projects

Businesses face a choice between using an energy supplier’s installation service or appointing independent contractors. OVO’s model offers coordinated procurement where one organization manages the entire project. This simplifies accountability but potentially limits choice in equipment brands or installer selection.

Independent routes allow businesses to specify exact components and negotiate directly with installers. Some companies prefer this control, particularly when integrating solar with other building works or upgrading electrical infrastructure simultaneously. However, it places project management burden on the business and requires in-house expertise to evaluate technical proposals.

Financing options affect the decision too. OVO’s service focuses on capital purchase where businesses own the system outright. Alternative models include power purchase agreements where a third party owns the panels and sells electricity to the business at a discount to grid rates. These PPAs eliminate upfront cost but reduce long-term savings since the business never owns the asset.

Maintenance and monitoring requirements span 20 to 25 years of system life. Panels need periodic cleaning, particularly in areas with high bird activity or dust. Inverters typically require replacement after 10 to 15 years. Performance monitoring catches faults early, preventing extended periods of reduced generation. OVO’s offering includes these services, whereas independent installations require businesses to arrange ongoing contracts separately.

Working with certified installers on commercial projects

SBS supports businesses evaluating renewable energy investments through our net zero program, which covers carbon reporting and compliance with procurement requirements. We help companies assess how on-site generation fits within broader decarbonization strategies and sustainability commitments.

Businesses should verify that installers hold current MCS certification and appropriate insurance for commercial projects. Certification alone does not guarantee quality, so reviewing previous commercial installations of similar scale provides valuable insight. Ask for references from businesses in your sector facing comparable energy profiles and site constraints.

Feasibility studies should detail generation estimates using your actual half-hourly consumption data if available. Generic assumptions about usage patterns can overestimate savings if your business operates differently from typical profiles. Request sensitivity analysis showing how returns vary with different electricity price scenarios and generation performance.

Contract terms need clear specification of responsibilities during grid connection delays or planning complications. Projects can stall for months while waiting for DNO approval or resolving unexpected roof structural issues. Understanding who bears costs and delays protects against budget overruns and missed savings projections.

Finally, consider how solar fits with other energy efficiency measures. Installing LED lighting, improving insulation, or upgrading HVAC systems reduces total electricity demand. A smaller, cheaper solar system may then meet a higher percentage of needs. Sequencing these investments correctly maximizes returns on all measures rather than addressing them in isolation.

Policy context and market development

UK government policy continues emphasizing on-site renewable generation as part of net zero strategy. The British Energy Security Strategy, published in 2022, targets 70GW of solar capacity by 2035, up from around 14GW today. Much of this growth must come from commercial and industrial rooftops given land use constraints on large ground-mounted farms.

Business rates treatment of solar installations affects financial returns. Rooftop systems under 1MW capacity are generally exempt from business rates. Larger installations face rates liability, adding an ongoing cost that must feature in return calculations. This creates an incentive to optimize system size rather than simply maximizing available space.

The Smart Export Guarantee replaced the feed-in tariff in 2019, requiring suppliers to pay for exported renewable electricity. However, rates vary significantly between suppliers. OVO’s 20p per kilowatt-hour sits at the higher end. Businesses should compare export rates when choosing electricity suppliers, as this income stream affects overall project returns substantially.

Grid decarbonization changes the carbon savings solar delivers. As the national grid adds more renewable generation, the carbon intensity of grid electricity falls. Solar installed today avoids more CO₂ than the same system will in 2030 when grid power is cleaner. This time value of carbon savings argues for earlier installation despite potential future cost reductions in panel prices.

Further information and technical resources

The Microgeneration Certification Scheme website provides details on installer standards and a searchable directory of certified contractors. Businesses can verify MCS certification and check for any disciplinary actions against installers under consideration.

The government’s planning portal explains when commercial solar needs planning permission. It covers permitted development rights and provides links to local planning authority contacts for specific site queries.

Energy suppliers publish their Smart Export Guarantee rates through Ofgem’s SEG page, which lists all participating suppliers and their current tariffs. This allows comparison of export income potential across different suppliers.

For broader sustainability strategy and compliance support, SBS provides advice through our ESG compliance service, helping businesses integrate renewable energy into their reporting and procurement requirements.